IOB WAREHOUSE RECEIPT FINANCE SCHEME

1. What is the purpose of this scheme?

Finance Either as Cash Credit or Short term loan against the pledge of Ware house/Cold storage receipts (Warehouse Receipts) issued by 1. Government ware house Corporations viz., Food Corporation of India Ltd. (FCI), Central Warehousing Corporation (CWC), National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), State Government Undertakings like AP State Warehousing Corporation etc. 2. Approved private warehouses

2. Who are the eligible for applying the loan under this scheme?

1. Individual Farmers (including Members of SHG/JLGs where the Branch has disaggregated data on loans to individual members)/Corporates/Farmers producer companies of individual farmers/Partnership firms and co-operatives of farmers engaged in Agricultural& allied activities. 2. Processors/commission agents/ mandis in semi urban & rural areas/Established traders with license & VAT registration. 3. Agro & food processing units. 4. The borrower/s should be established in dealing in the commodity with a good market reputation

The borrowers who are enjoying crop loans with us can also avail this facility. However, the crop loan should be closed from the proceeds of the loan against Warehouse Receipt.

3. Which produce are acceptable?

1. Perishable goods are not eligible. 2. Produce with high price fluctuations not eligible unless there is 100% collateral cover. 3.Applicant should have clear title for the commodity.

4. What is the Type of Facility?

Cash Credit or Short term loan

5.What is margin requirement?

25% of the value of the goods by considering the least value of the following three (i) Prevailing market rate (ii) Value in the Warehouse Receipt (iii) Min. support price

6. What is the maximum Quantum of loan under this scheme?

75% of the value of the produce subject to a maximum amount of Rs. 50 Lac (except cotton and rubber) and in case of NWR/ e-NWR maximum of Rs.75 lakhs

7. What are security requirements for loan under this scheme?

Prime Security: Pledge of Warehouse receipt endorsed in Bank's favour and Bank's name to be registered in the books of the warehouse.

Collateral security & Guarantee of third party: Based on the quantum of loan and antecedents of the applicant. However it shall not be mandatory

8. What is the Repayment period for this loan?

The period of loan would be less than the shelf life of the commodity subject to a maximum of 12 months. Loan is to be repaid in one lump sum or in stages before 12 Months.